A6 (2) - AUDIT DOCUMENTATION Flashcards
Purpose
1- Support for the auditor’s report
2-Assist in planning, conducting, & supervising audit
3- Accountability,audit team is responsible for its work
4- Information that may be useful for future audits
Requirements - Audit documentation should include
1- Provide a record of accumulated evidence
2-Provide results of audit tests and procedures;
3-Prepared in enough detail so auditor can understand
4- Comply with standards of fieldwork
5- Include characteristics of the specific items tested
6- Enable reviewers to understand
7- Document of departures from mandatory GAAS
8- Identify both the staff who performed work & reviewer
9-Contain proper indexing and cross-referencing
10-Indicate proper identification of client &period covered
Retention and Completion - Report Release Date
Date on which the report is delivered to the client.
Retention and Completion - Document Retention
1- SAS : 5 years from the report release date.
2- PCAOB:- 7 Years from the report release date
Retention and Completion - Documentation Completion Date (file to be assembled)
1- SAS:- within 60 days following the report release date
2- PCAOB :- 45 days following the report release date
Retention and Completion - Retention and Completion
The auditor should establish appropriate controls for audit documentation to protect its integrity, prevent unauthorized changes,
Nature and Extent of Audit Documentation
1- Paper form, electronic form, or other media
2- The risk of material misstatement
3- judgment was required in performing the work
4- The nature of the specific auditing procedure
5- The significance of the evidence obtained
6- The nature and extent of any problems identified
7- The need to document conclusions may not be obvious;
Specific Contents - Permanent File
1- contracts, 2- pension plans, leases, stock options, bylaws, 3- articles of incorporation 4- minutes of meetings, 5- bond indentures 6- internal information
Specific Contents - Current File
1- audit program
2- Financial statements and the auditor’s report
3- Working trial balance, adjusting journal entries
4- Letters of confirmation and representation
5- Analyses, worksheets, issues memoranda
6- schedules or commentaries prepared by the auditor.
7-copies of entity documents, such as contracts
8- Summaries of significant audit findings or issues
9- Records of tests of controls and substantive tests
Specific Contents - Significant Audit Findings
1-Matters related to the selection accounting principles
2-Matters related Possible material misstatements
3- matters for revise auditor’s previous risk assessment
4- difficulty in applying necessary audit procedures
5-matters result modify to the auditor’s standard report
6- Result in audit adjustments or corrections identified
Other Documentation Requirements
1- consideration of internal control,
2- the consideration of fraud risk factors,
Tickmarks
Audit documentation should include explanations of any tick marks used.
